0800 138 2636 | [email protected] Transcript www.incommglobal.com SoFi Q2 2021 Earnings Conference Thursday, 12 August 2021 Call Andrea Prochniak: Thank you all for joining us today for SoFi's second quarter of 2021 earnings call. I'm Andrea Prochniak, SoFi's VP of investor relations. And I'm thrilled to be here kicking off SoFi's quarterly reporting process as a public company. Joining me today are Anthony Noto, SoFi's CEO, and Chris Lapointe, SoFi's CFO. They will share prepared remarks regarding the quarter's results, and then take your questions at the end. Just after market close today we issued a press release announcing SoFi's second quarter 2021 financial results. Our discussion of our results today is complementary to the press release, which is available on the investor relations page of our website. Investors dot SoFi dot com. This conference call's being webcast live with accompanying slides on our IR page. And will be available for a replay for 30 days, beginning about one hour after the conclusion of this call. During the course of this conference call we may make forward looking statements based on current expectations, forecasts, and projections as of today's date. Any forward looking statements that we make are subject to various risks and uncertainties. And there are important factors that could cause actual outcomes to differ materially from those indicated in the statements. We discuss these factors in our filings with the SEC, including our upcoming Form 10-Q, which can be found on the IR page of our website. Or the SEC's filings website. SEC dot gov dot slash Edgar. As a reminder, we are not required to update our forward looking statements. In our presentation today, unless otherwise noted, we will be discussing adjusted financial measures, which are non- GAAP measures that we believe are meaningful when evaluating the company's performance. For the tale of disclosure on these measures, and the GAAP reconciliations, you should refer to the financial data contained within our press release, which is also posted on the IR page of our website. While today's discussion will focus primarily on the second quarter results, we encourage you to evaluate SoFi's performance on an annual basis, as quarterly results can be affected by unexpected events that are outside our control. Now I'll turn the call over to Anthony. Anthony Noto: Thank you, Andrea. Welcome all to SoFi's first earnings call as a public company. We're excited to speak with you today about our second quarter results. I want to start by providing you with a short overview of our mission, our strategy, our job to be done, which is more commonly referred to as our value proposition, and our points of differentiation. Our mission is to help our members, predominantly made up of what we call high earners not well served, achieve financial independence to realise their ambitions. Our strategy is to offer a comprehensive suite of products and services so that we are there for every major financial decision in our members' lives, and all the days in between. My passion for SoFi increases every day. Driven by the impact that we have on our members' lives. That impact is driven by our focus on a unique value prop. One job to be done, which is helping our members get their money right by giving them a one-stop shop to borrow better, save better, spend better, invest better, and protect better. Issue 1.0 13/08/2021 0800 138 2636 | [email protected] | www.incommglobal.com 0800 138 2636 | [email protected] Transcript www.incommglobal.com SoFi Q2 2021 Earnings Conference Thursday, 12 August 2021 Call Financial decisions are uniquely both rational and emotional. That's why earning the confidence and trust of our members by building lifetime relationships with them is so important. We do this in two ways. One, we constantly strive to create best of great offerings in terms of speed, selection, content, and convenience by using member feedback to drive continuous iteration and learning. Which drives compounding innovation over time that should make each product great on its own. And second, not only do we strive to make each of these products best in class, we also obsess over how to make them work better when they're used together. When we do both of these things right, we not only deliver unique SoFi experience to our members, that improves with each new product they choose. But we can also create the best unit economics across our business. As we get more efficient in serving our members, we can invest that savings in offering members the best rates, no fees, the best prices, terms, and selections. This in turn drives more engagement, more data, and our ability help our members use more products to get their money right. We call this the financial services productivity loop. And it's working. We see it in the numbers. Excelling year-over-year growth in members and products. Increasing member-wide pen values. Declining member acquisition costs. Superior revenue growth and improving margins. Today, to the best of our knowledge, SoFi is the only company providing a comprehensive solution set in one easily used mobile first digital platform. Many companies have talked about it. But only SoFi has done it. Now let's get into the quarter. I'll take you through a few high-level takeaways, and then Chris will take you through the results in more detail. The second quarter proved to be a very strong quarter full of milestones. We wanted to highlight four key points from the results. First, our strategy and execution are driving record results. Second, we are constantly striving to iterate, learn, and iterate some more in order to compound innovation, and differentiate our products. Third, we are hitting an inflection point in our financial services productivity of strategy with a number of financial services products used by the members reaching nearly three X the number of lending products during the quarter versus about equal one year ago. And fourth, we continue to invest aggressively to ensure we're driving compounding growth while still delivering profitability. Let's take these one by one, starting with our strategy and execution are driving record results. Specifically, we achieved record adjusted net revenue of $237 million despite our student loan refinancing business operating at less than 50% of pre-Covid levels due to the CARES Act. Which is a great testament to the diversity of our business. Total members grew 113% year-over-year, which is our eighth consecutive quarter of accelerating year-over-year growth. Total products held by our members increased 123%, our fourth consecutive quarter of year-over-year growth of more than 100%. We demonstrated a continued strong cross-buying trend, with cross-bought products up 1.7 X versus a year ago. Issue 1.0 13/08/2021 0800 138 2636 | [email protected] | www.incommglobal.com 0800 138 2636 | [email protected] Transcript www.incommglobal.com SoFi Q2 2021 Earnings Conference Thursday, 12 August 2021 Call Galileo, our technology platform business, more than doubled its total client accounts to 79 million, and just crossed $100 billion of annualised payment volume in July. We delivered our fourth consecutive quarter of positive EBITDA. And our financial services segment revenue had a breakout quarter of 2.5 X versus Q1 2021. This brings me to the second key takeaway. In the quarter we demonstrated our commitment to constantly iterate across four factors: fast, selection, content and convenience, to drive compounding innovation. These are just a few examples of what we did in the quarter. Our products are 100% digital. And there are infinite ways to tailor them to a specific member's needs. To ensure our members get the right loan for them, we launched a next gen credit model and reengineered our fraud and income verification processes. This drove a 30% higher approval rate with the same credit box leading to a 60% increase in fund conversion and improved net promoter score. All with zero negative impact on credit quality. Across lending we continue to invest in automation to make the loan application process easier, faster, and lower touch. In Q2 more than 50% of personal loans processed were 100% automated. That compares with less than 30% one year ago, which drover lower cost per loan and shortened time to fund to two days from four days last year, and nearly a week a few years ago. In student loans, we worked to align with members' individual needs throughout the pandemic, specifically by introducing a snooze feature. The snooze feature allows borrowers to lock in a low rate on a student loan today but delays the start of payments until the CARES Act loan deferral program ends in January 2022. In SoFi Money, we enhanced our direct deposit offering by adding two-day early paycheck to earlier enhancements like free overdraft protection, autosave, and round up features. In SoFi Invest members asked for more cryptocurrency selection. So we added 16 points to the offering. We also added the ability to redeem SoFi Reward points earned on all of SoFi products into cryptocurrency. And we were one of the first to offer IPO investing at the IPO price via our new IPO investment center. Also in Invest, we added to our already strong SoFi ETF offering by launching SoFi Weekly. The first ever equity ETF that pays weekly dividends. This joins SoFi TGIF, our fixed income ETF, which pays a dividend every Friday.